Some of you may have read Bloomberg's article on the Federal Reserve this week entitled, "Bernanke may redefine Fed mission in financial-market stability".
I found it to be an appallingly misleading piece of pro-Fed boosterism. If you're looking for one more piece of mainstream writing that supports the idea of increased powers for the Fed in the wake of the global financial crisis, you've found it:
"Ben S. Bernanke’s renomination allows him to redefine the Federal Reserve’s mission as he expands its power over financial markets and pulls back on a credit surge the central bank used to keep the economy from collapse, economists say.
Bernanke’s agenda during the next four years will include elevating the Fed’s role in reducing excessive risk in major financial institutions, figuring out how to curtail asset bubbles, and scaling back $1.2 trillion of monetary stimulus.
“He will have the opportunity to permanently change the structure of the Federal Reserve system,” said Vincent Reinhart, a former director of the Fed’s Monetary Affairs Division who’s now a resident scholar at the American Enterprise Institute, a Washington-based research group.
President Barack Obama nominated Bernanke, 55, for a second term yesterday, lauding the Fed chairman for helping “put the brakes on our economic free fall.”... "
The article goes on to laud Ben Bernanke for his efforts in bringing greater "transparency" to the Fed, while also citing him as "a steward...of Paul Volcker's legacy of establishing a regime of low inflation". Well, I think Ron Paul may have a few things to say about that.
Meanwhile, I'd like to point you to an incredible article from James Quinn at FSO entitled, "The Federal Reserve Must Die". If you'd like to get a rather unconventional (and enlightening) historical view of the Fed and its ever-expanding powers over our economy, give this one a careful look.
Related articles and posts:
1. Ron Paul: bringing transparency to the Fed - Fora.tv
2. Obama's plan could boost Fed's power - Finance Trends